In 2013, the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security jointly issued the "Opinions on Several Issues Concerning the Application of Law in Handling Criminal Cases of Organizing and Leading MLM Activities" clearly:
In the name of business activities such as selling goods and providing services, participants are required to obtain membership qualifications by paying fees or purchasing goods and services, and form tiers in a certain order, directly or indirectly using the number of development personnel as the basis for remuneration or rebates. MLM organizations that induce or coerce participants to continue to develop others to participate, defraud property, and disrupt the economic and social order, if there are more than 30 people involved in MLM activities within the organization and the level is above the third level, the organizer and leader shall be held country email list criminally responsibility.
In fact, a large part of the above two legal clauses are vague, and there is no clear explanation on how to define team remuneration, three levels, and pulling heads. Therefore, the current distribution systems such as Fenxiang, Taoke, and Youzan are basically They are all free in the gray area in the middle. The actual mainstream model is: A develops subordinate B, B develops subordinate C, and C sells to D. At this time, C is the first level, B is the second level, and A is the third level. C's sales behavior can bring a certain percentage of revenue to both A and B, thus defining the three-level distribution.
3. How to use the idea of distribution / pyramid selling to do fission
Let's take the fragrance that relies on Jingdong as an example, and its official website is introduced as:
"Fenxiang social e-commerce is an official strategic partner of JD.com. Based on JD.com's massive commodity pool, it selects the best products from all over the world, and takes community sharing as the core to provide consumers with high-quality and low-cost JD.com special offers and discounts. Excellent service."
"The core founding team of Fenxiang Social E-commerce is all from JD.com, integrating the core advantages of R&D, products, business, and operations. Founder & CEO, Mr. Deng Zhengping is the former founding general manager of JD.com mobile e-commerce, leading JD.com mobile users from zero to Tens of millions of users, with rich experience in e-commerce R&D and operation; former general manager of JD Smart Home, led the layout of JD smart home from 0 to millions of home users, the technical partner is the former JD product technical director, and the operating partner is Former director of business operations at JD.com."
Everywhere shows to users that they have the official support of JD.com, and even everyone is a team, that is, there is no clear authorization document, and the business entities are irrelevant. Based on this, it has attracted a large number of users through the distribution level in a short period of time.
At the same time, Fenxiang also learned the lessons of Peanut Diary and Yunji, which were defined as illegal pyramid schemes and punished for charging poll fees. The poll fees were cancelled for compliance, but they still encouraged polling.
Let's take Fenxiang as an example to analyze and dismantle this model:
According to this "treasure map" from Fenxiang's internal information, it can be seen that its entire user rating system and commission system are quite complete. The entire system is divided into five categories: registered users, super members, mentors, partners, and super partners. Each level has its own conditional threshold, level rights and different revenue sharing.
Among them, the registered users with the lowest threshold can complete the registration only by invitation, but the rights and interests are only self-purchasing to save money and rebates, and there is no rights and interests related to the development of offline. Because of the threshold requirements to join, such as being invited, there are recommenders, so that the entire platform users are completely covered under the level chain, and there is no “retail investor”.